Boeing Weighs Raising $10 Billion By Selling Its Stock

Boeing Co. is considering raising at least $10 billion by selling new stock as the planemaker seeks to replenish cash reserves depleted further by an ongoing strike, according to people familiar with the discussions, David Carnevali, Julie Johnson, Bailey Lipschultz, and Aaron Kirchfeld reported for Bloomberg News.

Boeing is under pressure to shore up its finances and maintain its investment-grade credit rating. I Photo: The Boeing Company Facebook

The company is working with advisers to explore its options, said the sources, who requested anonymity due to the confidentiality of the matter.

Raising equity isn’t likely to happen for at least a month, assuming the planemaker can resolve the strike, because Boeing wants a firm grasp of the financial toll from the walkout by 33,000 workers, the sources said.

Boeing is under pressure to shore up its finances and maintain its investment-grade credit rating. The company is one step away from dropping into speculative territory, which would further increase the cost of servicing its $58 billion debt load.

The situation has been exacerbated by the strike, now in its third week, which has shut down production of Boeing’s single-aisle airliner. Each day of the stoppage further dents the company’s reserves.